You don't have to report employees if you purchase the employee services from a temporary service agency and the employees remain employed by the agency. The temporary service agency must report them within 20 days of the hiring date and doesn't have to report them each time they're assigned to an employer-client. This rule also applies to employee leasing firms.

Employees of temporary service agencies must be reported as new hires at the beginning of their engagement with the temporary agency, and again only if the agency terminates or removes the employee from its payroll records and the employee is rehired.

Placement agencies

Placement agencies don't have to report individual clients because the clients aren't agency employees. When the client obtains employment through the service of the placement agency, the employer is then responsible to report the newly hired employee.

Teachers and professional athletes

Teachers and other employees of educational institutions who are paid an annual salary aren't considered to be rehired when they return to school in September. This is true even if they aren't required to report to school for 60 or more days.

This policy also applies to professional athletes and employees of professional teams who are paid an annual salary and work less than a full calendar year.